ing the name of a person
to be entered on or removed therefrom. This power can be exercised by
the court, whether the dispute as to membership is one between the
company and an alleged member, or between one alleged member and
another, but the machinery of the section is not meant to be used to try
claims to rescind agreements to take shares. The proper proceeding in
such cases is by action.

Payment for shares.

The same policy of guarding against an abuse of limited liability is
evinced in the Companies Act 1862, which required that shares in the
case of a limited company should be paid for in full. The legislature
has allowed such companies to trade with limited liability, but the
price of the privilege is that the limited capital to which alone the
creditors can look shall at least be a reality. It is therefore _ultra
vires_ for a limited company to issue its shares at a discount; but
there was nothing in the Companies Act 1862 which required that the
shares of a limited company, though they must be paid up in full, must
be paid up in cash. They might be paid "in meal or in malt," and it
accordingly became common for shares to be allotted in payment for
furniture, plate, advertisements or services. The result was that the
consideration was often illusory, shares being issued to be paid for in
some commodity which had no certain criterion of value. To remedy this
evil the legislature enacted in the Companies Act 1867, s. 25, that
every share in any company should be held subject to the payment of the
whole amount thereof in cash, unless otherwise determined by a contract
in writing filed with the registrar of joint stock companies at or
before the issue of the shares. This section not infrequently caused
hardship where shares had been honestly paid for in the equivalent of
cash, but owing to inadvertence no contract had been filed; and it was
repealed by the Companies Act 1900, and the old law restored. In
reverting to the earlier law, and allowing shares to be paid for in any
adequate consideration, the legislature has, however, exacted a
safeguard. It has required the company to file with the registrar of
joint stock companies a return stating, in the case of shares allotted
in whole or in part for a consideration other than cash, the number of
the shares so allotted, and the nature of the consideration--property,
services, &c.--for which they have been allotted.

Though every share carries with it the liabi